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Tax help - Low income workers - Complaints - Costs and compensation
Tax helpLow income workers Search Help

Costs and compensation

In this section we explain:

How to reclaim any costs you have paid out

How to claim a payment for worry, distress or extra delay ('consolatory payments')

How to reclaim any costs you have paid out

  • Whilst your complaint is being sorted out you may be able to make a claim for costs you have incurred in connection with the matter.


  • You can do this at any time whilst the Revenue are looking at your complaint or if you can tell them about your costs when you first make your complaint they may be able to process the claim quicker.


  • The person who is dealing with your complaint will be able to help you decide if you can make a claim.


  • Bear in mind that you may be asked for receipts or invoices to support your claim.


  • You cannot be compensated for your own time spent in sorting things out unless you can show that you have lost earnings as a direct result. You may however be able to reclaim the costs of a tax adviser.


  • You can see an example of how the system works in Kiri 1



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How to claim a payment for worry, distress or extra delay

  • Mistakes and delays may cause you a great deal of worry or distress. The Revenue say they realise how upsetting this can be.


  • If this has happened to you, please let them know. They may be able to pay you an amount to recognise your particular circumstances and so apologise for the way they have treated you. These consolatory payments are not intended to put a value on the distress you have suffered.


  • A difference of opinion between you, even when later the Revenue are shown to have been wrong, is not the reason for a payment unless they took an unreasonable view of the law or had failed you in some other way.


  • In addition if the Revenue handle your complaint badly, they may pay you a further sum. For example, if you sent them a reminder and there was a further delay in their response.


  • All such payments are tax-free and you need not show them on your tax return.


  • You can see an example of how the system works in Kiri 2



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Kiri 1 - claim for costs in connection with complaint

The Inland Revenue made a mistake with Kiri's tax. The matter took a long time to resolve and in the end Keri travelled over 25 miles to her tax office to try to get the matter settled and to lodge a complaint regarding the excessive delay. The delay had meant that Kiri had had to pay too much tax and she incurred bank overdraft charges as a result of overpaying her tax.

Kiri had kept details of all the letters she sent and receipts from the local post office for the faxes sent together with a receipt for her train and bus tickets to take her to and from the tax office. She lodged a claim with the Inland Revenue for the amounts she paid and sent copies of all the receipts together with the relevant telephone bills and bank statements to support this.

she received a cheque from the Revenue for the amounts claimed. She could however have made an interim claim before the complaint was settled.



Kiri 2 - claim for compensation for delay and distress

Kiri was very unhappy at the way she had been forced to travel 25 miles before her problem could be resolved. She decided that she had a case for compensation for both worry and distress and additionally for further amounts because of the long wait before the tax was repaid.

She wrote to the Inland Revenue at the office where the complaint had been lodged claiming both types of compensation. In the circumstances it was decided that Kiri's argument was valid and a compensation cheque was issued to her.



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